Problem
A. A recent issue of the Federal Reserve Bank of Richmond's publication Econ Focus has an article called "Education Without Loans" about universities that are offering to buy a share of a student's future income in exchange for funding their education. Based on the information in Chapter 5, what do you think of the chances for such a program working?
B. Why are insurance companies able to write health insurance coverage policies for large groups - like employees of General Motors - but have big problems with writing policies for individuals? (How is the issue of "pre-existing conditions" related to this problem?)
C. "Branding is simply a tool by which greedy corporations get people to pay too much money for things they don't need!" said the government bureaucrat from the consumer protection agency. What does the economics of information have to say about that statement? In what ways does branding make us better off?